UPSC Prelims 2000·GS1·economy·basic concepts

A rise in ‘SENSEX’ means

Dalvoy logo
Reviewed by Dalvoy
UPSC Civil Services preparation
Last updated 23 May 2026, 3:31 pm IST
  1. Aa rise in prices of shares of all companies registered with Bombay Stock Exchange
  2. Ba rise in prices of shares of all companies registered with National Stock Exchange
  3. Can overall rise in prices of shares of group of companies registered with Bombay Stock ExchangeCorrect
  4. Da rise in prices of shares of all companies belonging to a group of companies registered with Bombay Stock Exchange

Explanation

The correct option is C because SENSEX, or the Stock Exchange Sensitive Index, tracks the performance of 30 well established and financially sound companies listed on the Bombay Stock Exchange. It does not represent all companies registered on the exchange, but rather a select group of representative companies from various sectors. Therefore, a rise in SENSEX indicates an overall increase in the share prices of this specific group of companies, serving as an indicator of the general market trend. Options A and B are incorrect because they refer to all companies or the wrong exchange, while option D implies an increase in all shares within a group, whereas the index measures the collective movement of the selected group.
economy: A rise in ‘SENSEX’ means

Related questions

More UPSC Prelims practice from the same subject and topic.